MELTDOWN

10 years ago

Fed Decision Tanks Dollar

Ending a rally that pushed the dollar to its highest levels since 2006, the currency's value versus the euro, yen, pound, Canadian dollar, Swiss franc and Swedish krona dropped 2.7 percent yesterday on news of the Fed's $1.15 trillion plan to buy up bonds. It was the steepest one-day fall in nine years against the euro as investors worried that the Fed's decision to print new money would lead to inflation. The dollar had previously strengthened during the economic downturn as demand for safe and reliable U.S. Treasury bonds shot up with the stock market tanking.